Too Old to Work, Too Young to Retire?
By Andrea Ichino, Guido Schwerdt, R. Winter‐Ebmer, Josef Zweimüller. Social Science Research Network, 2017
164 citations recorded by the source corpus.
We study whether employment prospects of old and young workers differ after a plant closure. Using Austrian administrative data, we show that old and young workers face similar displacement costs in terms of employment in the long-run, but old workers lose considerably more initially and gain later. We interpret these findings using a search model with retirement as an absorbing state, that we calibrate to match the observed patterns. Our finding is that the dynamics of relative employment losses of old versus young workers after a displacement are mainly explained by different opportunities of transition into retirement. In contrast, differences in layoff rates and job offer arrival rates cannot explain these patterns. Our results support the idea that retirement incentives, more than weak labor demand, are responsible for the low employment rates of older workers.
Subfields: Demography, Economics and Econometrics, General Health Professions
View Paper: https://www.semanticscholar.org/paper/388310e3417fe9c452893d68fa40ba286c718241
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Citations in the corpus
- Labor Turnover Before Plant Closure: 'Leaving the Sinking Ship' vs. 'Captain Throwing Ballast Overboard' (2008, unknown): “…The latter condition minimizes the inclusion of “false plant deaths”, but might eliminate also some true plant closure, where large groups of workers move “together” from one dying firm into the same new firm.14 The sample selection follows closely the one applied in Ichino et al. (2007).”
- Earnings Losses of Displaced Workers Revisited (2010, background): “8 These numbers are calculated using seasonally adjusted monthly rates from 1974 through 1985 available at www. paworkstats.state.pa.us. Readers interested in learning about the data will find more information at the BLS Web site, www.bls.gov. 9 The paper drew both from JLS (1993a) and their monogra”